Revenue

How would you describe an industry that wants to put more Americans in prison and keep them there longer so that it can make more money? In America today, approximately 130,000 people are locked up in private prisons that are being run by for-profit companies, and that number is growing very rapidly. Overall, the U.S. has approximately 25 percent of the entire global prison population even though it only has 5 percent of the total global population. The United States has the highest incarceration rate on the entire globe by far, and no nation in the history of the world has ever locked up more of its own citizens than we have. Are we really such a cesspool of filth and decay that we need to lock up so many of our own people? Or are there some other factors at work? Could part of the problem be that we have allowed companies to lock up men and women in cages for profit? The two largest private prison companies combined to bring in close to $3,000,000,000 in revenue in 2010, and the largest private prison companies have spent tens of millions of dollars on lobbying and campaign contributions over the past decade. Putting Americans behind bars has become very big business, and those companies have been given a perverse incentive to push for even more Americans to be locked up. It is a system that is absolutely teeming with corruption, and it is going to get a lot worse unless someone does something about it.

Over the years, these political strategies have allowed private prison companies to promote policies that lead to higher rates of incarceration and thus greater profit margins for their company. In particular, private prison companies have had either influence over or helped to draft model legislation such as “three-strikes” and “truth-in-sentencing” laws, both of which have driven up incarceration rates and ultimately created more opportunities for private prison companies to bid on contracts to increase revenues.

If you can believe it, three of the largest private prison companies have spent approximately $45,000,000 combined on lobbying and campaign contributions over the past decade.

Would they be spending so much money if those companies did not believe that it was getting results?

Just look at what has happened to the U.S. prison population over the past several decades. Prior to 1980, there were virtually no private prisons in the United States. But since that time, we have seen the overall prison population and the private prison population absolutely explode.

For example, between 1990 and 2009 the number of Americans in private prisons grew by about 1600 percent.

Not that it is wrong to put people in prison when they commit crimes. Of course not. And right now violent crime is rapidly rising in many of our largest cities. When people commit violent crimes they need to be removed from the streets.

But when you put those criminals into the hands of private companies that are just in it to make a buck, the potential for abuse is enormous.

How would you feel if a member of your own family was locked up in such a facility?

And the truth is that there seem to be endless stories of abuse in private prisons. One private prison company reportedly charges inmates $5.00 a minute to make phone calls but only pays them $1.00 a day to work…

Last year the Corrections Corporation of America (CCA), the nation’s largest private prison company, received $74 million of taxpayers’ money to run immigration detention centers. Their largest facility in Lumpkin, Georgia, receives $200 a night for each of the 2,000 detainees it holds, and rakes in yearly profits between $35 million and $50 million.

Prisoners held in this remote facility depend on the prison’s phones to communicate with their lawyers and loved ones. Exploiting inmates’ need, CCA charges detainees here $5 per minute to make phone calls. Yet the prison only pays inmates who work at the facility $1 a day. At that rate, it would take five days to pay for just one minute.

Speaking of work, private prisons have found that exploiting their inmates as a source of slave labor can be extraordinarily profitable. Today, private prisons are stealing jobs from ordinary American workers in a whole host of industries. The following is from an article by Vicky Pelaez…

According to the Left Business Observer, the federal prison industry produces 100% of all military helmets, ammunition belts, bullet-proof vests, ID tags, shirts, pants, tents, bags, and canteens. Along with war supplies, prison workers supply 98% of the entire market for equipment assembly services; 93% of paints and paintbrushes; 92% of stove assembly; 46% of body armor; 36% of home appliances; 30% of headphones/microphones/speakers; and 21% of office furniture. Airplane parts, medical supplies, and much more: prisoners are even raising seeing-eye dogs for blind people.

And many of the largest corporations in America have rushed in to take advantage of this pool of very cheap slave labor. Just check out some of the big names that have been exploiting prison labor…

At least 37 states have legalized the contracting of prison labor by private corporations that mount their operations inside state prisons. The list of such companies contains the cream of U.S. corporate society: IBM, Boeing, Motorola, Microsoft, AT&T, Wireless, Texas Instrument, Dell, Compaq, Honeywell, Hewlett-Packard, Nortel, Lucent Technologies, 3Com, Intel, Northern Telecom, TWA, Nordstrom’s, Revlon, Macy’s, Pierre Cardin, Target Stores, and many more. All of these businesses are excited about the economic boom generation by prison labor. Just between 1980 and 1994, profits went up from $392 million to $1.31 billion. Inmates in state penitentiaries generally receive the minimum wage for their work, but not all; in Colorado, they get about $2 per hour, well under the minimum. And in privately-run prisons, they receive as little as 17 cents per hour for a maximum of six hours a day, the equivalent of $20 per month. The highest-paying private prison is CCA in Tennessee, where prisoners receive 50 cents per hour for what they call “highly skilled positions.” At those rates, it is no surprise that inmates find the pay in federal prisons to be very generous. There, they can earn $1.25 an hour and work eight hours a day, and sometimes overtime. They can send home $200-$300 per month.

But of course some of the biggest profits for private prisons come from detaining young people. Today, private prison companies operate more than 50 percent of all “youth correctional facilities” in the United States.

And sometimes judges have even been bribed by these companies to sentence kids to very harsh sentences and to send them to their facilities. The following is from a report about two judges in Pennsylvania that were recently convicted for taking money to send kids to private prisons…

Michael Conahan, a former jurist in Luzerne County, was sentenced on Friday to 210 months in custody by Senior U.S. District Court Judge Edwin M. Kosik II. Conahan was also ordered to pay $874,000 in restitution. […] As Main Justice reported in August, Ciavarella, former president judge of the Court of Common Pleas and former judge of the Juvenile Court for Luzerne County, was sentenced to 28 years in prison and ordered to make restitution of $965,930. […]

Conahan’s role in the “cash for kids” scheme was to order the closing of a county-run detention center, clearing the way for Ciavarella, once known as a strict “law and order” judge, to send young offenders to private facilities. This arrangement worked out well for Ciavarella and Conahan, as well as the builder of the facilities and a developer, who pleaded guilty to lesser charges.

The arrangement didn’t work out so well for the young offenders, some of them sent away for offenses that were little more than pranks and would have merited probation, or perhaps just scoldings, if the judges had tried to live up to their oaths.

Are you starting to see why private prisons are such a problem?

Hundreds of kids had their lives permanently altered by those corrupt judges.

When you allow people to make money by locking other people up in cages, you are just asking for trouble.

The more Americans they put behind bars, the more money these private prisons make. It is a system that needs to be brought to an end.

Barack Obama and John Boehner both seem absolutely determined to drive U.S. government finances off a cliff. The mainstream media would have you believe that there are vast ideological differences between the two of them and that they are bitter enemies, but that is simply not the case. Both of them say that tax increases are “necessary”, but they disagree over the details. Both are seeking about a trillion dollars of spending cuts and about a trillion dollars of new “revenue”, but they don’t see eye to eye on how to get there. But overall, they are both definitely playing in the same ballpark. And those numbers certainly do sound impressive until you realize that they are talking about a time span of ten years. Personally, I would love to see federal spending cut by a trillion dollars this year. But that will never happen. A trillion dollars over the course of a decade breaks down to about 100 billion dollars per year. That still sounds like a lot of money until you put it up next to the trillion dollar deficits that we have been running for four years in a row. Even if somehow those spending cuts turned out to be real (which they aren’t), they would still only put a very small dent in our yearly budget deficits. Obama and Boehner both want to continue to have a gigantic federal government that showers people with government money, and both of them want to continue to pass much of the burden for paying for this gigantic government on to future generations. And both of them want to continue to steal more than 100 million dollars an hour from our children and our grandchildren in order to maintain the false bubble of debt-fueled prosperity that we are enjoying right now. This is incredibly foolish and they are leading us down a path that will lead to national ruin.

Sadly, even the pathetically small “budget cut” and “new revenue” figures that they are floating around turn out to be quite hollow when you inspect them more closely.

For example, the “new revenue” figures that both Obama and Boehner are talking about rely on extremely unrealistic assumptions about U.S. economic growth. In order to meet their revenue projections, the U.S. economy would need to grow significantly faster than it is right now and we would need to get through the entire decade without having a single recession.

What do you think the chance of that happening is?

But that is the way that things work in Washington D.C. – our politicians function in a world where it is assumed that everything will work out just perfectly in the future.

For example, if the figures put out at the beginning of the Bush administration were to be believed, we should be absolutely swimming in government surpluses by now.

That didn’t work out too well, did it?

The “spending cuts” are even more illusory.

Obama is projecting that we will save 130 billion dollars by manipulating the way that inflation is calculated for annual increases in Social Security benefits.

But our politicians are already pretending that there is hardly any inflation when any rational person can see that prices are soaring.

So can they really manipulate the numbers to make them look even smaller?

By doing so, they would be cheating elderly Americans out of 130 billion dollars. But I guess this is more convenient for our politicians than going after real government waste.

Obama also plans to save $290 billion by having lower interest payments on U.S. government debt.

Try not to laugh.

The average rate of interest on U.S. government debt was 2.534 percent at the end of November. That is ridiculously low. The only place it is going to go in future years is up.

Back in the year 2000, the average rate of interest on U.S. government debt was 6.638 percent. If the average rate of interest on U.S. government debt rose back to that level, we would be paying out more than a trillion dollars a year just in interest on the national debt.

So Obama’s projection that we are going to save 290 billion dollars over the next ten years by forcing interest rates on U.S. government debt even lower is insanely optimistic. Only a delusional person would make such an assumption.

And most of the savings from the “projected spending cuts” that Obama and Boehner are proposing would not happen until later in the decade.

After all, they don’t want to “hurt the economy” right now.

In fact, Obama is actually proposing that we should increase spending by $80 billion this year so that we can encourage economic activity.

So don’t let anyone fool you with any nonsense about how Obama and Boehner are working on a plan that would get U.S. government finances in order.

No matter how their “negotiations” turn out, we will continue to run trillion dollars deficits year after year with no end in sight.

If Americans want a monstrous federal government that passes out government checks like candy, then they should pay for it. Personally, I think that taxes are already way, way too high and that the government already brings in more than enough money.

If Americans don’t want to pay much higher taxes, then they should tell the government to quit spending money that we don’t have.

But all of this trying to have it both ways has got to stop. We are destroying the future for our children and our grandchildren. We have already run up 16 trillion dollars in debt and we can’t even seem to slow down our reckless debt binge. If they get the chance, someday future generations will curse us for what we did to them.

The funny thing is that John Boehner was supposed to be a “conservative” that was going to do something about all of this debt. But since John Boehner has been Speaker of the House, the U.S. House of Representatives has approved legislation that has increased the size of our national debt by approximately $18,944 per household.

The number of homeless students in America topped one million for the first time last year as a result of the economic recession, a number that has risen 57 percent since 2007.

The US Department of Education found that of these 1,065,794 children, many lived in abandoned homes, cheap hotels, stations, church basements and hospitals. Some spent their time sleeping over at the houses of various friends whenever they could. Others fell victim to drugs and sexual abuse, in some cases trading sexual acts for food, clothing and shelter or selling illegal drugs.

Even in the midst of our debt-fueled prosperity, the number of Americans that are dependent on the government just continues to rise.

According to one recent survey, 55 percent of all Americans have received money from a safety net program run by the federal government at some point in their lives.

So how bad will things get when we eventually quit borrowing so much money and we start living within our means?

Nobody is looking forward to that day. Certainly not our politicians. They don’t want to be blamed for all of the painful adjustments that will happen once the party ends.

So they just keep borrowing and spending. But at some point the music will stop and the house of cards will come crashing down.

It won’t happen this week or this month, but it will happen soon enough.

Every year average Americans pay dozens of different types of taxes, and yet many of our politicians are very open about the fact that they want to raise rates even higher and invent even more ways to bleed us all dry. Someday historians will look back and be absolutely amazed at how stupid we were. We have the most complicated tax code in all of human history and at this point the federal tax code is more than four times as long as the entire collected works of William Shakespeare. In many places it is so incomprehensible that nobody actually understands what it means and the entire thing is absolutely riddled with loopholes from the beginning to the end. Trust me, I used to study this stuff. Nobody could ever read the entire thing – it is close to four million words long. But that is just for federal income taxes. We have a number of other taxes taken out of our paychecks such as state income taxes, Social Security taxes and Medicare taxes. Sadly, the taxes taken out of your paycheck are only just the beginning. As I will detail below, there are more than 40 other taxes that average Americans pay each year in addition to the taxes that are taken out of our paychecks. Our politicians love to find ways that they can “raise revenue” without us feeling it. Most people just focus on income tax rates and they forget about the dozens of other ways that they are bleeding us dry. It really is kind of like “death by a thousand cuts”, and of course the middle class gets hit the hardest. The poor are exempt from many taxes, the ultra-wealthy are masters at cheating the system and avoiding taxes, and so the most pain is always felt by those in the middle. Hard working middle class families and small businesses all over America are being financially raped by this insidious system. If you know of anyone out there that believes that taxes are “too low”, please show this article to them.

Just counting federal, state and local income taxes, some Americans will be paying marginal tax rates of over 50 percent in 2013. But like I said, there are a lot of other taxes we pay than just those.

The following are 44 more taxes that at least some average Americans are paying now or will be paying soon other than federal, state and local income taxes…

#1 Building Permit Taxes

#2 Capital Gains Taxes

#3 Cigarette Taxes

#4 Court Fines (indirect taxes)

#5 Dog License Taxes

#6 Drivers License Fees (another form of taxation)

#7 Federal Unemployment Taxes

#8 Fishing License Taxes

#9 Food License Taxes

#10 Gasoline Taxes

#11 Gift Taxes

#12 Hunting License Taxes

#13 Inheritance Taxes

#14 Inventory Taxes

#15 IRS Interest Charges (tax on top of tax)

#16 IRS Penalties (tax on top of tax)

#17 Liquor Taxes

#18 Luxury Taxes

#19 Marriage License Taxes

#20 Medicare Taxes

#21 Medicare Tax Surcharge On High Earning Americans Under Obamacare

#22 Obamacare Individual Mandate Excise Tax (if you don’t buy “qualifying” health insurance under Obamacare you will have to pay an additional tax)

#23 Obamacare Surtax On Investment Income (a new 3.8% surtax on investment income that goes into effect next year)

#24 Property Taxes

#25 Recreational Vehicle Taxes

#26 Toll Booth Taxes

#27 Sales Taxes

#28 Self-Employment Taxes

#29 School Taxes

#30 Septic Permit Taxes

#31 Service Charge Taxes

#32 Social Security Taxes

#33 State Unemployment Taxes (SUTA)

#34 Tanning Tax (a new Obamacare tax on tanning services)

#35 Telephone Federal Excise Taxes

#36 Telephone Federal Universal Service Fee Taxes

#37 Telephone Minimum Usage Surcharge Taxes

#38 Telephone State And Local Taxes

#39 Tire Taxes

#40 Tolls (another form of taxation)

#41 Traffic Fines (indirect taxation)

#42 Utility Taxes

#43 Vehicle Registration Taxes

#44 Workers Compensation Taxes

Sadly, this list is far from complete. There are many more forms of taxation that could be included.

When you account for all forms of taxation, there are some Americans that “play by the rules” that are sending more than half of their incomes to the government.

This is why “tax avoidance” has become a multi-billion dollar industry in the United States. People are sick and tired of being drained dry by a system that is way too complicated and way too unfair.

Posted below are 30 reasons why the U.S. tax system is stupid. Some of these facts I have discussed before, and some of them are new. You might want to be sitting down while you are reading this, because this list is likely to make many of you very angry…

1. Thanks to Proposition 30, many high income residents of California will be paying marginal income tax rates of 51.9% in 2013 if the fiscal cliff is not avoided. Keep in mind that the 51.9% figure only includes federal and state income taxes. It does not count any of the dozens of other taxes that we pay each year.

2. If a fiscal cliff deal is not reached, many residents of New York and Hawaii will also be paying marginal income tax rates of more than 50 percent.

3. If Americans fully funded the government through their taxes without any borrowing, the average American would have to work for 197 days just to meet the expenses incurred by government.

4. The U.S. tax code is now 3.8 million words long. If you took all of William Shakespeare’s works and collected them together, the entire collection would only be about 900,000 words long.

5. According to the National Taxpayers Union, U.S. taxpayers spend more than 7.6 billion hours complying with federal tax requirements each year. Imagine what our society would look like if all of that time was spent on more economically profitable activities.

6. 75 years ago, the instructions for Form 1040 were two pages long. Today, they are 189 pages long.

7. There have been 4,428 changes to the tax code over the last decade. It is incredibly costly to change tax software, tax manuals and tax instruction booklets for all of those changes.

8. According to the National Taxpayers Union, the IRS currently has 1,999 different publications, forms, and instruction sheets that you can download from the IRS website.

9. Our tax system has become so complicated that it is almost impossible to file your taxes correctly. For example, back in 1998 Money Magazine had 46 different tax professionals complete a tax return for a hypothetical household. All 46 of them came up with a different result.

10. In 2009, PC World had five of the most popular tax preparation software websites prepare a tax return for a hypothetical household. All five of them came up with a different result.

11. The IRS spends $2.45 for every $100 that it collects in taxes. That is incredibly inefficient.

12. According to The Tax Foundation, the average American has to work until April 17th just to pay federal, state, and local taxes. Back in 1900, “Tax Freedom Day” came on January 22nd.

13. When the U.S. government first implemented a personal income tax back in 1913, the vast majority of the population paid a rate of just 1 percent, and the highest marginal tax rate was just 7 percent.

14. Residents of New Jersey pay $1.64 in taxes for every $1.00 of federal spending that they get back.

16. According to Forbes, the 400 highest earning Americans pay an average federal income tax rate of just 18 percent.

17. Warren Buffett had an effective federal income tax rate of just 17.4 percent for 2010.

18. The top 20 percent of all income earners in the United States pay approximately 86 percent of all federal income taxes.

19. Sadly, as Bill Whittle has shown, you could take every single penny that every American earns above $250,000 and it would only fund about 38 percent of the federal budget.

20. The United States has the highest corporate tax rate in the world (35 percent). In Ireland, the corporate tax rate is only 12.5 percent. This is causing thousands of corporations to move operations out of the United States and into other countries.

21. Some tax havens are doing a booming business in setting up sham headquarters for U.S. corporations. For example, the city of Zug, Switzerland only has a population of 26,000 people but it is the headquarters for 30,000 companies.

22. In 1950, corporate taxes accounted for about 30 percent of all federal revenue. In 2012, corporate taxes will account for less than 7 percent of all federal revenue.

23. In a previous article, I discussed how many of our largest corporations make huge profits and yet pay less than nothing in taxes….

What U.S. corporations are able to get away with is absolutely amazing.

Deaths from traffic accidents around April 15, traditionally the last day to file individual income taxes in the U.S., rose 6 percent on average on each of the last 30 years of tax filing days compared with a day during the week prior and a week later, according to research published in the Journal of the American Medical Association.

27. The elite are not stupid. They are not just going to sit there and let our politicians tax them into oblivion. In fact, many of them will openly cheat if that is what it takes to avoid taxes. Most of them have become masters at avoiding taxes or they have hired people that do that kind of work for them. According to the IMF, the global elite are holding a total of 18 trillion dollars in offshore banking havens such as the Cayman Islands.

28. It has been reported that 80 percent of all international banking transactions involve offshore banks. A whopping 1.4 trillion dollars is being held in offshore banks in the Cayman Islands alone.

30. If a deal is not reached and the “fiscal cliff” is not avoided, the average American taxpayer can expect to pay about $3,500 more in taxes next year.

Clearly, the tax system that we are using right now is not working.

The big corporations and the ultra-wealthy have mastered the art of moving money offshore and using loopholes to make their tax burdens as low as possible.

So our politicians just keep finding more ways to squeeze more money out of the middle class and small businesses in order to make up the difference.

If you are a middle class American and you don’t think that you are paying enough taxes already then you are one sick puppy.

They are draining blood from us in dozens of different ways, and they are constantly inventing new ways to tax all of us.

So what is the solution?

Well, a good first step would be to completely abolish the federal income tax. It is terribly inefficient, it is way too complicated and it is terribly unfair. It rewards those that know how to exploit loopholes and those that know how to cheat the system. Those that “play by the rules” always get the short end of the stick.

Our government could easily be funded by tariffs and other forms of taxation that are more equitable. There were vast stretches of American history when there was no federal income tax, and the federal government did just fine.

And of course one of our biggest problems is that the federal government simply spends way, way too much money. There is not a single category of government spending that does not need to be reduced and/or made much more efficient. The amount of waste that goes on in Washington D.C. is absolutely mind boggling.

Unfortunately, both political parties seem content to be married to the current system so I would not expect any significant changes any time soon.

So what do you think about all this?

Do you believe that taxes are too low, or do you believe that they are too high?

Please leave a comment below with your thoughts, and please share this article with as many people as you can.

America absolutely loves Wal-Mart. 100 million customers visit Wal-Mart every single week in this country. But is Wal-Mart good for America? That is a question that most people never stop and ask. Most of us love shopping in big, clean stores that are packed with super cheap merchandise, but the truth is that Wal-Mart is destroying America in a lot of ways. As you will see below, Wal-Mart has destroyed tens of thousands of small businesses and countless manufacturing jobs over the past couple of decades. Wal-Mart has become a gigantic retail behemoth that sells five times more stuff than any other retailer in the United States. Unfortunately, a large percentage of all the stuff sold at Wal-Mart is made overseas. What that is costing the U.S. economy in terms of lost jobs and lost revenue is incalculable. But Wal-Mart is a perfect example of where our economic system is headed. Our economy is becoming completely and totally dominated by highly centralized monolithic predator corporations that ruthlessly crush all competition and that will stoop to just about anything in order to cut costs. In the future, will we all be working for gigantic communal entities that funnel all of the wealth and economic rewards to a very tiny elite? That sounds very much like how communist China works, and red-blooded Americans should want no part of that. America is supposed to be about free enterprise and competition and working together to build up this country, and Wal-Mart is destroying all of that.

The following are 20 facts about Wal-Mart that will absolutely shock you….

#10 According to the Economic Policy Institute, trade between Wal-Mart and China resulted in the loss of 133,000 manufacturing jobs in the United States between 2001 and 2006.

#11 The CEO of Wal-Mart makes more in a single hour than a full-time Wal-Mart associate makes in an entire year.

#12 Tens of thousands of Wal-Mart employees and their children are enrolled in Medicaid and are dependent on the government for healthcare.

#13 Between 2001 and 2007, the value of products that Wal-Mart imported from China grew from $9 billion to $27 billion.

#14 Amazingly, 96 percent of all Americans now live within 20 miles of a Wal-Mart.

#15 The number of “independent retailers” in the United States declined by 60,000 between 1992 and 2007.

#16 According to the Center for Responsive Politics, Wal-Mart spent 7.8 million dollars on political lobbying during 2011. That number does not even include campaign contributions.

#17 Today, Wal-Mart has five times the sales of the second largest U.S. retailer (Costco).

#18 The combined net worth of six members of the Walton family is roughly equal to the combined net worth of the poorest 30 percent of all Americans.

All over the country, independent retailers are going out of business because they cannot compete with Wal-Mart and their super cheap Chinese products. Often communities will give Wal-Mart huge tax breaks just to move in to their areas. But what many communities don’t take into account is that the introduction of a Wal-Mart is often absolutely devastating to small businesses….

A study of small and rural towns in Iowa showed lost sales for local businesses ranging from -17.2% in small towns to -61.4% in rural areas, amounting to a total dollar loss of $2.46 BILLION over a 13-year period.

Wal-Mart often tells one thing to the public and then does another thing in private. Sadly, the truth is that Wal-Mart does not care about U.S. manufacturing jobs. Wal-Mart just wants to get products as cheaply as they possibly can, and most of the time that means getting them from China.

I was president of the Southwestern Apparel Manufacturers Association. There was a meeting sometime between 1985 and 1990. Walmart had contacted our organization and asked if they could meet with us at our beautiful Apparel Mart we had here in Dallas, which has now been razed, because all the independent merchants don’t exist that used to come to it. Two people from Walmart came down and they said they were going to be sourcing goods from overseas and we would have to meet those prices for consumer products and to get ready for it—we are going to be sourcing the world. Walmart was the only company that came out and said this.

It was sort of shocking: I was selling them some merchandise at the time. On the back of their trucks it was saying “Bring it Back to America!” They had the big “keep it in America” program going at that time on the big signs in the stores. Meanwhile when I reminded the buyer of that, she told me, “that is just for domestic consumption, we’re going to buy at the cheapest we can anywhere on earth.”

We are losing millions of good jobs that cannot be replaced. If you can believe it, the United States has actually lost an average of about 50,000 manufacturing jobs a month since China joined the World Trade Organization in 2001.

Last year, the U.S. trade deficit with China was the biggest trade deficit that one nation has had with another nation in the history of the world, and Wal-Mart played a huge role in that.

In fact, Wal-Mart has actually been forcing some U.S. manufacturers to pack up and move overseas. The following is from a recent article by Amy Traub….

Walmart’s market power is so immense that the even the largest suppliers must comply with its demands for lower and lower prices because they cannot afford to have their goods taken off its shelves. Companies that used to manufacture products in the United States, from Levi’s jeans to lock maker Master Lock, were pressured to shut their U.S. factories and moved manufacturing abroad to meet Walmart’s demand for low prices.

Unfortunately, the vast wealth that Wal-Mart is sucking out of our communities is not put back into our communities. The profits are funneled out to Wal-Mart executives and shareholders. We may enjoy the low prices, but very little of the money that we give to Wal-Mart gets recycled in our local areas.

In the old days, you could actually support a family selling electronics or running a general store. But you can’t support a family working at Wal-Mart. The vast majority of the jobs that Wal-Mart creates are very low paying. Large numbers of Wal-Mart employees are actually on welfare, and this is part of the reason why we have seen such an explosion in the number of the working poor in America.

At this point, more than 40 percent of all jobs in America are low wage jobs and the middle class is rapidly disappearing.

If we do not support American jobs and American manufacturers they will continue to go away and the welfare rolls in this country will continue to explode.

There is not going to be any prosperity in this country without jobs. Unfortunately, most Americans simply do not understand how good jobs are being systematically destroyed in America every single day.

The path that America is headed on today is only going to end in complete and total disaster. We are being transformed from a wealthy nation into a poor nation. In the end, we will be dominated by a very tiny elite and everyone else will either be among the working poor or will be totally dependent on the government.

Our system is supposed to be about open, honest competition. But that is not what Wal-Mart is about. Wal-Mart is about crushing small businesses and manufacturers here in America and getting us all to buy their super cheap Chinese-made goods.

So what do all of you think about Wal-Mart? Please feel free to post a comment with your thoughts below….

How would you feel if someone told you that one of the largest banks on Wall Street makes more money whenever the number of Americans on food stamps goes up? Unfortunately, this is something that is actually true. In the United States today, one out of every seven Americans is on food stamps. In fact, the number of Americans on food stamps has increased by a whopping 14 million since Barack Obama entered the White House. All of this makes JP Morgan very happy, because JP Morgan has been making money by the boatload on food stamps. Right now, JP Morgan Chase issues food stamp debit cards in 26 U.S. states and the District of Columbia. The division of JP Morgan Chase that issues these debit cards made an eye-popping 5.47 billion dollars in net revenue during 2010. JP Morgan is paid per customer, so when the number of Americans on food stamps goes up, they make more money. But doesn’t this give JP Morgan an incentive to try to keep the number of Americans on food stamps as high as possible? Of course it does. JP Morgan is interested in making money as rapidly as possible. If JP Morgan can get more Americans enrolled in the food stamp program and keep them enrolled in it for as long as possible, that is good for business.

And the Obama administration is certainly doing what it can to help out. Even though a whopping 46 million Americans are now on food stamps, the Obama administration plans to give out large amounts of money to organizations that are able figure out ways to get even more people enrolled in the program….

Despite the historic rise in food stamp use, however, the Obama Administration believes not enough people are receiving food stamps who should be and is offering $75,000 grants to groups who devise “effective strategies” to “increase program participation” among those who have yet to sign up.

In fact, U.S. Agriculture Secretary Tom Vilsack says that if we can get even more Americans enrolled in the food stamp program, that will be a great way to “stimulate the economy“.

Of course JP Morgan just loves all of this. The more people they have in the system the better.

Christopher Paton, the managing director of JP Morgan’s “Treasury Solutions” business, made the following statement about the “food stamp business” that his firm is engaged in during an interview with Bloomberg Television….

“This business is a very important business to JPMorgan. It’s an important business in terms of its size and scale…Right now, volumes have gone through the roof in the past couple of years. The good news, from JPMorgan’s perspective, is the infrastructure that we built has been able to cope with that increase in volume.”

You can see more of the interview with Paton in the video posted below….

As the interview above noted, more than 40 percent of all food stamp recipients in the United States actually have a job.

Back in 1980, less than 30% of all jobs in the United States were low income jobs. Today, more than 40% of all jobs in the United States are low income jobs. This trend is perfect for JP Morgan because it means that the number of low income workers that are eligible for food stamps is going to keep increasing.

And what makes all of this even sadder is that JP Morgan has outsourced many of the customer service jobs for its food stamp program to India.

Yes, you read that correctly.

When Americans that can’t find a decent job need help with their food stamps there is a good chance that they will be talking to a customer service representative sitting in India.

Isn’t that crazy?

When ABC News confronted JP Morgan about this, JP Morgan would not tell ABC which states have customer service calls sent to India and which states have them handled inside the United States….

JP Morgan is the only one today still operating public-assistance call centers overseas. The company refused to say which states had calls routed to India and which ones had calls stay domestically. That decision, the company said, was often left up to the individual states.

Shawana Busby does not seem like the sort of customer who would be at the center of a major bank’s business plan. Out of work for much of the last three years, she depends upon a $264-a-week unemployment check from the state of South Carolina. But the state has contracted with Bank of America to administer its unemployment benefits, and Busby has frequently found herself incurring bank fees to get her money.

To withdraw her benefits, Busby, 33, uses a Bank of America prepaid debit card on which the state deposits her funds. She could visit a Bank of America ATM free of charge. But this small community in the state’s rural center, her hometown, does not have a Bank of America branch. Neither do the surrounding towns where she drops off her kids at school and attends church.

She could drive north to Columbia, the state capital, and use a Bank of America ATM there. But that entails a 50 mile drive, cutting into her gas budget. So Busby visits the ATMs in her area and begrudgingly accepts the fees, which reach as high as five dollars per transaction. She estimates that she has paid at least $350 in fees to tap her unemployment benefits.

There is something about all of this that just seems very, very wrong.

When we have good jobs, the big banks hit us with outrageous bank fees and they try to get us enslaved to credit card debt.